Woo Koon Chee v Scandinavian Boiler: Enforcing Consent Order for Share Purchase

In Woo Koon Chee v Scandinavian Boiler Service (Asia) Pte Ltd and others, the Court of Appeal of Singapore addressed an appeal concerning the enforcement of a consent order for the sale and purchase of shares. The court held that the Relevant Respondents were entitled to initiate execution proceedings to enforce the Consent Order and that there was no necessity for the Relevant Respondents to institute a fresh action to compel due compliance with the Consent Order. The appeal was partially allowed, setting aside paragraph 2 of the Order of Court dated 26 January 2010.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal allowed in part; paragraph 2 of the Order of Court dated 26 January 2010 was set aside, with the rest of the Order of Court to stand.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding enforcement of a consent order for share purchase. The court held that a fresh action was unnecessary to enforce the consent order.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
OthersRespondentCorporationOrder of Court to standNeutral
Woo Koon CheeAppellantIndividualAppeal allowed in partPartial
Scandinavian Boiler Service (Asia) Pte LtdRespondentCorporationOrder of Court to standNeutral

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJustice of AppealYes
Andrew Phang Boon LeongJustice of AppealNo

4. Counsels

4. Facts

  1. A Consent Order was issued on 27 April 2009, mandating the purchase of the Appellant's shares in the 1st Respondent.
  2. The Consent Order prescribed that the completion of the sale and purchase of the Appellant’s shares was to take place within three weeks after the Valuer had furnished its Valuation Report to the parties.
  3. The Valuation Report was released on 8 December 2009.
  4. The sale and purchase of the shares did not take place within the stipulated timeframe.
  5. The Relevant Respondents applied for a direction to authorize the Registrar to sign share transfer forms on behalf of the Appellant.
  6. The Appellant opposed the application, arguing that a fresh action was required to enforce the Consent Order.

5. Formal Citations

  1. Woo Koon Chee v Scandinavian Boiler Service (Asia) Pte Ltd and others, Civil Appeal No 21 of 2010, [2010] SGCA 35
  2. Woo Koon Chee v Scandinavian Boiler Service (Asia) Pte Ltd and others, , [2010] SGHC 66

6. Timeline

DateEvent
Legal proceedings commenced (Suit No 53 of 2008).
Consent Order issued, mandating the purchase of Appellant's shares at fair value.
Valuer, Stone Forest Corporate Advisory Pte Ltd, appointed.
Valuation Report released.
Sale and purchase of shares not completed.
Relevant Respondents' solicitors offered to tender a cashier’s order as payment for the shares.
Relevant Respondents' solicitors offered to tender a cashier’s order as payment for the shares.
Appellant's solicitors requested more time to respond.
Appellant's solicitors requested more time to complete the sale and purchase.
Relevant Respondents applied for a direction to authorize the Registrar to sign share transfer forms.
Order of Court issued.
Court of Appeal decision.

7. Legal Issues

  1. Enforcement of Consent Order
    • Outcome: The court held that a fresh action was not required to enforce the consent order.
    • Category: Procedural
    • Sub-Issues:
      • Whether a fresh action is required to enforce a consent order
      • Interpretation of Order 45 Rule 8 of the Rules of Court

8. Remedies Sought

  1. Specific Performance
  2. Order for Registrar to sign share transfer forms

9. Cause of Actions

  • Enforcement of Contract
  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Indian Overseas Bank v Motorcycle Industries (1973) Pte Ltd & OrsHigh CourtYes[1992] 3 SLR(R) 841SingaporeCited regarding the principle that a consent order puts an end to proceedings and supersedes the original cause of action.
Green v RozenN/AYes[1955] 1 WLR 741N/ACited as an example of a case where the terms of a settlement agreement may be enforced by a separate action.
Deans Property v Land Estates ApartmentsN/AYes[1994] 2 SLR 198SingaporeCited as an example of a case where the terms of a settlement agreement may be enforced by a separate action.
Tong Lee Hwa v Chin Ah KwiN/AYes[1971] 2 MLJ 75N/ACited as an example of a case where the terms of a settlement agreement may be enforced by a separate action.
Wilding v SandersonN/AYes[1897] 2 Ch 534N/ACited for the principle that a consent judgment or order is enforceable while it stands, and a party affected by it cannot simply wait until it is sought to be enforced against him.
The “Dilmun Fulmar”N/AYes[2004] 1 SLR(R) 140SingaporeCited regarding the principle that once a suit was compromised by a subsequent agreement, the original cause of action would have ceased to exist.
Dashwood v DashwoodEnglish High CourtYes[1927] WN 276England and WalesCited as the origin of the Tomlin Order.
Diversey (Far East) Pte Ltd v Chai Chung Ching Chester and othersCourt of AppealYes[1992] 3 SLR(R) 412SingaporeCited for the court's adoption of the terminology of a 'consent judgment order'.
Nim Minimaart (a firm) v Management Corporation Strata Title Plan No 1079High CourtYes[2010] 2 SLR 1SingaporeCited as an example of a case where the court suggested that there would first be an order, and if that was not complied with, a judgment would be extracted.
Onslow v. Commissioners of Inland RevenueCourt of AppealYes(1890) 25 Q.B.D. 465N/ACited for the principle that a judgment is a decision obtained in an action, and every other decision is an order.
Ex p. ChineryCourt of AppealYes(1884) 12 Q.B.D. 342N/ACited for the principle that a judgment is a decision obtained in an action, and every other decision is an order.
Ex. p. MooreN/AYes(1885) 14 Q.B.D. 627N/ACited for the principle that a judgment is a decision obtained in an action, and every other decision is an order.
Shaw v. Hertfordshire County CouncilCourt of AppealYes[1899] 2 Q.B. 282N/ACited for the principle that a judgment is a decision obtained in an action, and every other decision is an order.
PJ Holdings Inc v Ariel Singapore Pte LtdHigh CourtYes[2009] 3 SLR(R) 582SingaporeCited for the point that committal proceedings are a measure of last resort.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R 5, 2006 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Supreme Court of Judicature Act (Chapter 322)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Consent Order
  • Share Purchase
  • Valuation Report
  • Enforcement Proceedings
  • Tomlin Order
  • Mandatory Order
  • Specific Performance

15.2 Keywords

  • Consent Order
  • Share Purchase
  • Enforcement
  • Civil Procedure
  • Contract Law

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Contract Law
  • Company Law
  • Share Valuation
  • Consent Orders